The National Payments Corporation of India (NPCI) has recently introduced a revolutionary feature on its Unified Payments Interface (UPI) platform, called “UPI Circle-Delegate Payments.” This new feature allows a primary user to delegate transaction rights to another individual, making UPI transactions more accessible and flexible, especially for those who may not have a bank account. In this article, we’ll explore how UPI Circle-Delegate Payments work, how you can set it up, the transaction limits involved, and the potential benefits of this feature.
What Are UPI Circle-Delegate Payments?
UPI Circle-Delegate Payments enable a primary UPI account holder to share their UPI account with a secondary user. This feature is designed to provide flexibility in managing payments, allowing a primary user to delegate payment functions to a trusted individual, such as a family member or an acquaintance. Whether it’s delegating payment rights for everyday expenses or managing small business transactions, UPI Circle-Delegate Payments offer a convenient way to extend UPI account access without requiring additional bank accounts.
How Does UPI Circle-Delegate Payments Work?
Setting up UPI Circle-Delegate Payments is straightforward. Here’s a step-by-step guide:
- Creating a Mandate: The primary user initiates the process by creating a mandate for the secondary user. This can be done through their UPI application by selecting the secondary user’s contact information.
- Delegation Options: The primary user can choose between full or partial delegation:
- Full Delegation: The secondary user is granted the authority to make payments directly, up to a specified amount set by the primary user.
- Partial Delegation: The secondary user must send a payment request for each transaction, which the primary user must approve using their UPI PIN. This adds an extra layer of control and security.
- Transaction Authorization: For full delegation, the transaction proceeds automatically, and the primary user receives a notification. For partial delegation, the primary account holder must authorize each transaction request before payment is processed.
- Payment Confirmation: Once the transaction is completed, both the primary and secondary users receive a confirmation notification. All transactions are recorded and accessible to both users for their records.
Transaction Limits for UPI Circle-Delegate Payments
To ensure security and control, the NPCI has set specific transaction limits for UPI Circle-Delegate Payments:
- Full Delegation: The maximum monthly limit for a secondary user is ₹15,000, with a maximum transaction limit of ₹5,000.
- Partial Delegation: The standard UPI transaction limits apply, allowing the primary user to retain greater control over each transaction.
These limits ensure that the primary user can effectively manage the delegated transactions and prevent unauthorized use.
How to Add a Secondary User?
To add a secondary user through the UPI Circle-Delegate Payments feature:
- Select the Contact: The primary user can either scan the secondary user’s QR code or select their contact from the contact list within the UPI app.
- Manual Entry Restriction: For security reasons, manual entry of mobile numbers is restricted. Users must select from existing contacts or scan a QR code.
- Limitation on Delegation: A primary user can delegate up to five secondary users, while a secondary user can only accept delegation from one primary user.
Benefits of UPI Circle-Delegate Payments
UPI Circle-Delegate Payments offer several advantages:
- Financial Inclusion: This feature is particularly beneficial in households where only one member has a bank account. It allows non-bank members to transact digitally, reducing reliance on cash.
- Convenience: For families, it allows dependents such as minors or elderly parents to manage expenses without needing separate accounts. It also empowers employees to handle business transactions under the oversight of their employers.
- Control and Security: Primary users retain control over transactions by setting limits and receiving real-time notifications for every transaction made by the secondary user.
- Flexibility in Payments: Whether it’s delegating payment rights to children for daily school expenses or allowing an employee to manage petty cash, UPI Circle-Delegate Payments offer unmatched flexibility.
Security Measures to Safeguard UPI Delegate Payments
Given the rise in UPI-related scams, NPCI has implemented strong security measures to protect UPI delegate payments:
- Two-Factor Authentication: Every delegation request is subject to a two-factor authentication process, ensuring that only the account holder can authorize the transaction.
- Transaction Limits: Primary users can set transaction limits, which helps prevent unauthorized use.
- Real-Time Notifications: Primary users receive instant notifications for every transaction, allowing them to quickly spot and report any suspicious activity.
- Education and Awareness: Users are encouraged to set strong PINs, enable real-time notifications, and avoid sharing sensitive information like OTPs and PINs to prevent fraud.
Conclusion
UPI Circle-Delegate Payments represent a significant advancement in the UPI ecosystem, offering enhanced convenience, flexibility, and security for users. By allowing primary users to delegate transaction rights, this feature bridges the gap between banked and unbanked individuals, making digital payments more accessible to all. Whether you’re a family managing shared expenses or a business owner overseeing petty cash transactions, UPI Circle-Delegate Payments offer a practical solution tailored to your needs.
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